Charles Barrington, is due to retire in late 2016 when his share options

mature. FREE ACCA STUDY MATERAILS (6 marks)

(c) Pinzon, a limited liability company and audit client, is threatening to sue your

firm in respect of audit fees charged for the year ended 30 September 2015.

Pinzon is alleging that Bartolome billed the full rate on air fares for audit staff

when substantial discounts had been obtained by Bartolome.

(4 marks)

(d) Hewitt, a limited liability company and audit client, has seen its profits

collapse in recent years. The company has decided it needs a major

restructuring if it is to survive, and has asked your firm for advice in producing

a business plan to take to its bank in order to achieve new

finance. FREE ACCA BOOKS DOWNLOAD PDF You are the manager responsible for the audit of Seymour Co. The company offers information, proprietary foods and medical innovations designed to improve the quality of life. (Proprietary foods are marketed under and protected by

registered names.) The draft consolidated financial statements for the year ended

31 December 2015 show revenue of $74·4 million (2014 – $69·2 million), profit

before taxation of $13·2 million (2014 – $15·8 million) and total assets of $53·3

million (2014 – $40·5 million). The following issues arising during the final audit

have been noted on a schedule of points for your attention: FREE ACCA BOOKS DOWNLOAD

(a) In 2009, Seymour had been awarded a 20-year patent on a new drug,

Tournose, that was also approved for food use. The drug had been developed

at a cost of $4 million which is being amortised over the life of the patent.

The patent cost $11,600. In December 2015 a competitor announced the

successful completion of preliminary trials on an alternative drug with the

same beneficial properties as Tournose. The alternative drug is expected to